Bank not to blame for Oriental demise says Yeung

GERRY Yeung is refusing to blame the banks for the sudden demise of his luxury boutique hotel concept, Yang Sing Oriental.

The restaurateur turned hotelier instead says the recession is the sole cause for his decision to shut the business after less than eight months’ trading.

He told TheBusinessDesk: “Everyone wants to bash the banks at the moment, but the truth is our lender, NatWest, has been supportive and the business would have worked had the economy not slumped at such an alarming rate.

“Our business model was set for totally different economic times, so it has been a question of bad luck really.”

Mr Yeung, whose popular Yang Sing restaurant is unaffected by the demise of the hotel, said of the project: “If this was a film we’d say the hotel was critically acclaimed but not commercially successful.”

He said he does not believe the economy will be in a position of health for several years: “I think even in 2010, when people seem to think things will improve, that there will still be recessionary pressure in the economy.

“Whoever is in the Treasury is probably going to have to look at raising taxes and cutting public spending which isn’t going to help.”

Mr Yeung, who invested £1m in the £8m project believes another hotel operator may be able to make the site work: “I don’t think the project is doomed, I think there will always be room for a luxury product if you start with much lower expectations in terms of revenues.

“As I said our business model was for different economic environment. I am sure the hotel will be attractive for other operators.”

Around 30 jobs will be lost at the Princess Street-based hotel. Mr Yeung said his employees had been “understanding and supportive” and some were staying on to contact guests who had booked to stay there.